This year the ATO has introduced real-time checks of deductions for tax returns completed online, which will help identify claims that are substantially higher than those of other people with similar occupations and income.

“Every tax return is scrutinised using increasingly sophisticated tools and data analytics developed by our ‘data doctors’ at the ATO,” said ATO assistant commissioner Graham Whyte.

“This means we can identify and review income tax returns that may omit information or contain unreasonable deductions.”